Asia Fuel Oil-HSFO eases; US sanctions waiver on Russia still unclear

By Reuters News

SINGAPORE, Oct 19 (Reuters) - Asia's high sulphur fuel oil (HSFO) market showed some signs of easing on Monday, while industry sources eyed a potential move by the US to waive sanctions on Russia.

US President Trump had signed an executive order to waive sanctions and tariffs on Russia, but the US secretary of state said that the president will use up to 60 days to consider the move. Details and the actual impact remained unclear.

Cracks sold lower. The 380-cst HSFO crack closed at about $13 a barrel on Monday, LSEG data showed, while very low sulphur fuel oil (VLSFO) crack fell to about $25 a barrel.

In the near term, downstream bunkers for HSFO remains tight, with spot premiums seen supported at the Singapore port, some trade sources said.

Meanwhile, the November hi-five spread narrowed further to about $77 a metric ton as of Monday.


REFINERY UPDATES

- Australia's Ampol on Monday cut its fourth-quarter output forecast for higher-value products at its Lytton refinery after bringing forward maintenance work, overshadowing a surge in third-quarter refining margins and sending its shares lower.

- ExxonMobil warned in a regulatory filing that changes in oil prices would lower its third-quarter upstream earnings by $1.3 billion.

OTHER NEWS

- Oil prices slipped from a five-month high on Monday as investors took profits after US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports. O/R

- China's official data showed the oil throughput rate at refineries in September rose slightly for a third straight month, as continued strong fuel exports supported demand after Beijing eased export curbs in mid-July, analysts said.

- The United States has issued a request for proposal for an exchange of up to 17 million barrels of crude oil from the nation's Strategic Petroleum Reserve, the Department of Energy said.

- Iran has managed to export some liquefied petroleum gas and jet fuel since July, despite a US naval blockade, shipping intelligence showed and people involved in security said.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: One trade

- 0.5% VLSFO: No trade.

ASSESSMENTS

FUEL OIL



CASH ($/T)

ASIA CLOSE

RIC

Cargo - 180cst

812.90

Diff - 180cst

51.29

Cargo - 380cst

801.36

Diff - 380cst

47.77

Cargo - 0.5% VLSFO

851.32

Diff - 0.5% VLSFO

25.25

For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below:

180cst M1

180cst M1/M2

380cst M1

380cst M1/M2

0.5% VLSFO M1

0.5% VLSFO M1/M2

Cracks 180cst-Brent M1

Cracks 180cst-Dubai M1

Cracks 380cst-Brent M1

Cracks 380cst-Dubai M1

Cracks 0.5% VLSFO-Brent M1

Cracks 0.5% VLSFO-Dubai M1

Visco 180cst/380cst M1

Hi-5 0.5% VLSFO/380cst M1

GoFo 10PPM/0.5% VLSFO M1

East-West M1

Barges M1

Barges M1/M2

Crack Barges-Brent M1

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